IMPACT Awards 2023

Impact project/investment of the year - renewables: Bank of America

Bank of America's nine year agreement to purchase $580 million in wind energy tax credits galvanised a $1.5 billion renewable energy portfolio.

The bank will purchase the tax credits from renewable energy developer IRG Acquisition Holdings (IRGAH), a partnership between Invenergy, CDPQ and funds managed by Blackstone Infrastructure Partners. This transaction allowed IRGAH to acquire a 1.4 GW renewable energy portfolio from American Electric Power.

Karen FangThe $1.5 billion portfolio consists of 14 projects across 11 US states and is divided between wind energy and solar projects. The energy produced by the portfolio is contracted to various corporations, municipalities and utilities.

"The transaction with Invenergy represents the first announced large-scale transferability transaction to close since the passing of the Inflation Reduction Act," said Karen Fang, global head of sustainable finance at Bank of America. "We're creating a transferability market to help scale the growth of renewable energy, the energy transition, and its associated supply chain development."

Last year, the US government passed the Inflation Reduction Act, which created 'transferability', a lever Bank of America used in this deal that makes it easier for renewable energy companies to secure funding.

Bank of America served as transferability underwriter, placement agent, and financial advisor for the deal.

One IMPACT Awards judge described it as an "exciting, replicable structure with big impact".

Following the successful completion of this deal Bank of America is confident it can be used as a blueprint by other clean energy developers across low-carbon technologies such as wind, solar, hydrogen, battery storage, and carbon capture.

Bank of America is considering replicating the mechanics of the deal in other sectors, such as battery storage.